On Sunday, June 11, bitcoin (BTC) is trading at $26.5 thousand, its price rose by 2.3% over the past week. The specialist analyzed the situation on the market and assessed the prospects of bitcoin rate movement for the next seven days.
"Sellers have calmed down, prices are recovering".
On Sunday, bitcoin traded in the plus (+2.38%), and the price reached $26,839. Bitcoin had a rough start to the week due to worries about lawsuits against cryptocurrency exchanges Binance and Coinbase. However, after the release of the U.S. inflation data in May, the markets increased their appetite for risk. Investors were estimating a rate hike at the June 14 meeting with more than 90% probability, which was fully justified. The interest rates were left unchanged in the range of 5.00-5.25% per annum.
Despite the noticeable decline in bitcoin quotes, caused by the Binance and Coinbase charges, as well as the reduction of liquidity in the market, the strengthening of bitcoin began on June 15 in the U.S. session, when the dust settled and the negative information on the crypto-industry stopped coming in. On Friday (June 16), the BTC/USDt pair rose 2.92% to $26,345. Active growth in stock indices and the collapse of the U.S. dollar at the beginning of the week also supported the growth of Bitcoin and altcoins. On Saturday (June 17), the rise in quotations continued to $26,839.
BTC/USD
26 557 +39 (0,15%)
According to the technical analysis, the uptrend has a truncated pattern with three tops that may indicate the start of a global correction to the fall from the peak of $31k. The correction after such a pattern reaches 62% of the growth, which in this case is $25,600. However, at the beginning of the move, the truncated pattern can become a running correction in the direction of the move, which can accelerate the rise. In order to break through the downtrend line and lock in a bullish signal, buyers need to slip $27,500.
It is worth noting that the United States celebrates Liberation Day, or Juneteenth, which is a federal public holiday, on June 19. Many major exchanges, such as the New York Stock Exchange and NASDAQ, operate on a shortened schedule on that day, which could lead to low liquidity on Monday. This could be an opportunity for buyers.
Next week, there are two speeches scheduled by J. Powell, head of the U.S. Federal Reserve, as well as FOMC officials. Their reflections on continued high inflation and a new rate hike in the coming meetings may rock the markets and reduce risk appetite. It is unclear what the SEC head of exchanges will be broadcasting.
Friday's comments from two Fed officials dampened optimism about the end of aggressive interest rate hikes. Fed Governor Christopher Waller said that core inflation is not declining as much as he expected. Richmond Federal Reserve President Thomas Barkin expressed satisfaction with further rate hikes, given that inflation has not yet reached an apparent return to 2%.
In terms of the vote, the layout is rough as follows: two FOMC members see the current rate level (5.25%) as appropriate to complete the hike cycle, four officials see another 25bp hike as appropriate, and the remaining 12 see at least two more 25bp hikes.
Fed Chairman Jerome Powell said at a press conference Wednesday that no decision has been made on the upcoming Fed meeting in July, but many investors and analysts expect a renewed rate hike.
The U.S. Securities and Exchange Commission (SEC), in its lawsuits against crypto-giants Binance and Coinbase, has recognized many tokens as unregistered securities. Nevertheless, bitcoin as a commodity is still in demand and is experiencing a new crisis caused by the SEC's attention to altcoins like BNB (BNB), Cardano (ADA), and Solana (SOL).
Another crypto platform will delist Solana, Cardano, and Polygon
BitRiver estimates that the cryptocurrency market remains uncertain and price movements are influenced by many factors, including regulation, economic data, industry news, and changes in forex and stock market prices. Therefore, investors should continue to monitor the news and act with caution when making investment decisions.
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